A recent Supreme Court case offers some valuable guidance on contractual interpretation, as Nikki Edwards explains
- Wood v Capita Insurance Services Ltd clarifies the courts’ approach to contractual interpretation
Earlier this year the Supreme Court handed down judgment in Wood v Capita Insurance Services Ltd [2017] UKSC 24, [2017] All ER (D) 182 (Mar) a case which clarified the approach of the English courts to contractual interpretation and emphasised that the recent history of the common law of contractual interpretation is one of continuity rather than change. This article considers the perceived inconsistency prior to Wood and the guidance for the legal profession which was confirmed in this case.
The need for clarification
Wood concerned the interpretation of an indemnity clause in a sale and purchase agreement. The High Court decided the preliminary issue of the interpretation of the indemnity clause in favour of the appellant. This decision was overturned by the Court of Appeal.
In the Supreme Court, the appellant sought to argue that the Court of Appeal had fallen into
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